What Is a Derivative Lawsuit

question 9

Multiple Choice

What is a derivative lawsuit?

• A) an action brought by the board of directors on behalf of the corporation
• B) an action brought by a majority of the board of directors against an individual board member
• C) an action brought by a shareholder or shareholders on behalf of the corporation, when the board of directors does not file the suit
• D) an action brought by shareholders against the corporation
• E) an action brought by the officers against the directors

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Definitions:

Compatibility

The ability of two or more systems, entities, or factors to work together harmoniously without conflict.

Simplicity

The quality or condition of being easy to understand or do; the absence of complexity.

Manipulation

The act of controlling or influencing someone or something in a skillful but often unfair or deceitful way.

Co-optation

A strategy by which members of other groups are brought into a beneficial relationship or partnership, often to neutralize potential opposition.